Good News From Our Cabinet - PTPTN interest rates is reduced from 3% to 1%

http://thestar.com.my/news/story.asp?file=/2008/8/14/nation/22079534&sec=nation

For all the PTPTN loan holders, please read the above news for your own information. Indeed, it is a good news from our cabinet.

In my opinon, it is very very hard for those who have just graduated to deal with the great dept from PTPTN. Everything seems so expensive now, and with just RM 2k (that’s the average pay for fresh graduates), they cannot really survive especially during this economy downturn period.

Imagine for people who borrowed 52k from PTPTN. With 3% interest, the monthly administration fee is about RM 130 and the amount needed to pay is RM 323.43 per month. So net amount paid per month would be RM 193.43 out of RM 52k. So, if pay for this month and not the following 2 months, the total amount will be like this:

RM 52000 + RM 130 - RM 323.43 + 2 (RM130) = RM 52066.57
The amount paid RM 323.43 will become NOTHING as the net amount will be back to
> RM 52k.

So let us see the new interest rate, 1% out of RM 52k is RM 520. Which means for 1 month, just only need to pay RM 43.33 for interest charge/administration fee.

Now, if pay with RM 323.43 per month
RM 52000 + RM 43.33 - RM 323.43 = RM 51719.90

So how many months can go on without paying before my RM 323.43 got swallowed up by the interest?

RM 52000 - RM 51719.90 = RM 280.1 ….around 6 months.

2 months as compared to the new 6 months. Is not that good?

p/s : the above calculation is refered from website. I would like to share this good news and also want to let you all know the proper calculation method.

Thanks.